Stockholders' Equity (Deficit) and Equity Incentive Plans | Stockholders’ Equity (Deficit) and Equity Incentive Plans Redeemable Convertible Preferred Stock Upon the closing of the Company’s IPO, all 63,761,950 shares of redeemable convertible preferred stock were automatically converted into shares of common stock on a one-to-one basis, and the carrying value of $340.2 million was reclassified into common stock and additional paid-in-capital. As of October 31, 2020, there were no shares of redeemable convertible preferred stock issued and outstanding. Common Stock The Company’s Amended and Restated Certificate of Incorporation authorized the Company to issue 1,000.0 million and 122.0 million shares of common stock at a par value of $0.0001 as of October 31, 2020 and January 31, 2020, respectively. As of October 31, 2020 and January 31, 2020, approximately 102.0 million and 19.0 million shares of common stock were issued and outstanding, respectively. Each share of common stock is entitled to one vote. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when and if declared by the board of directors, subject to the prior rights of holders of all classes of stock outstanding. As of October 31, 2020 and January 31, 2020, no dividends had been declared. Stock Plans The Company has two equity incentive plans: the 2010 Stock Plan (the “2010 Plan”) and the 2020 Equity Incentive Plan (the “2020 Plan”). In connection with the Company’s IPO in September 2020, the 2010 Plan was terminated and replaced by the 2020 Plan and all shares that remained available for issuance under the 2010 Plan at that time were reserved for issuance under the 2020 Plan. The number of shares of common stock available for issuance under the 2020 Plan will be increased by any shares of common stock subject to awards outstanding under the 2010 Plan that expire or otherwise terminate without having been exercised or issued in full, are tendered to or withheld by the Company for payment of an exercise price or for satisfying tax withholding obligations, or are forfeited to or repurchased by the Company due to failure to vest . The Company has issued stock options and restricted stock units (“RSUs”) to employees, directors, consultants, and advisors pursuant to the 2010 Plan. Through October 31, 2020, the Company has granted no equity awards pursuant to the 2020 Plan. Employee stock options are granted with an exercise price no less than the fair value of the underlying common stock on the grant date, in general vest based on continuous service over four years, and expire 10 years from the date of grant. The value of RSUs is measured based on the grant date fair value of the awards and in general vest based on satisfying both a service-based condition based on continuous service over four years and a liquidity event condition. As of October 31, 2020, there were 13.3 million shares available for grant under the 2020 Plan. The 2020 Plan provides that the number of shares reserved will automatically increase on the first day of each fiscal year, beginning on February 1, 2021, by an amount equal to the least of (i) 12,500,000 shares, (ii) 5% of the outstanding shares of our common stock on the last day of the immediately preceding fiscal year, or (iii) such other amount as the administrator of the 2020 Plan may determine. Stock Options The following table is a summary of option activity during the nine months ended October 31, 2020: Number of Weighted Weighted Aggregate (in thousands) (years) (in thousands) Balance at January 31, 2020 27,841 $ 3.72 7.7 $ 233,918 Options granted 1,635 $ 12.12 Options exercised (2,170) $ 2.61 Options cancelled (2,072) $ 6.08 Balance at October 31, 2020 25,234 $ 4.16 7.0 $ 331,066 Options exercisable at January 31, 2020 14,141 $ 2.01 6.5 $ 142,932 Options exercisable at October 31, 2020 15,710 $ 2.61 6.1 $ 230,411 Stock options granted during the three months ended October 31, 2020 and 2019 had a weighted-average grant-date fair value $11.13 and $6.68 per share, respectively. The aggregate intrinsic value of options exercised during the three months ended October 31, 2020 and 2019 was $17.0 million and $6.7 million, respectively. Stock options granted during the nine months ended October 31, 2020 and 2019 had a weighted-average grant date fair value of $6.21 and $5.46 per share, respectively. The aggregate intrinsic value of options exercised during the nine months ended October 31, 2020 and 2019 was $25.9 million and $9.9 million, respectively. No income tax benefits have been recognized for stock-based compensation arrangements. As of October 31, 2020 and January 31, 2020, there was $40.4 million and $52.0 million, respectively, of total unrecognized compensation expense related to unvested employee and non-employee stock options that is expected to be recognized over a weighted-average period of 2.6 and 3.1 years, respectively. Early Exercise of Employee Options As of October 31, 2020 and January 31, 2020, the Company had a liability $0.3 million and $0.4 million, respectively, for 91,375 and 139,750 shares of common stock that were unvested and early exercised by employees as of October 31, 2020 and January 31, 2020, respectively. Restricted Stock Units The following table is a summary of RSU activity for the nine months ended October 31, 2020: Number of Shares Weighted (in thousands) RSUs outstanding at February 1, 2020 — Granted 3,274 $ 13.03 Forfeited (83) $ 12.12 RSUs outstanding at October 31, 2020 3,191 $ 13.06 RSUs expected to vest at October 31, 2020 3,191 $ 13.06 As of October 31, 2020, there was $27.7 million of total unrecognized compensation expense related to unvested employee and director RSUs, of which $1.0 million is for the RSUs subject to certain other performance metrics. Total unrecognized compensation expense related to unvested RSUs is expected to be recognized over a weighted-average period of 1.8 years. Jask Labs Plans In connection with the acquisition of Jask Labs, the Company assumed 265,075 options to purchase shares of common stock, granted under the Jask Labs 2015 Stock Option and Grant Plan and the Jask Labs 2018 Equity Incentive Plan (together, the “Jask Plans”), at a weighted-average exercise price of $9.86 per share and weighted-average fair value of $6.39 per share, of which 142,096 and 233,852 remained outstanding as of October 31, 2020 and January 31, 2020, respectively. As of October 31, 2020 and January 31, 2020, 95,079 and 124,184 options were vested and exercisable with a weighted-average exercise price of $9.79 and $9.21, and the total unrecognized compensation expense related to these awards was $0.3 million and $0.6 million, respectively. During the nine months ended October 31, 2020, 52,073 options were exercised. Stock-Based Compensation Expense The following table presents total stock-based compensation expense included in the condensed consolidated statements of operations (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2020 2019 2020 2019 Cost of revenue $ 213 $ 50 $ 314 $ 96 Research and development (a) 5,728 2,474 9,606 3,953 Sales and marketing 4,747 1,960 7,863 3,866 General and administrative (b) 8,255 5,244 10,883 8,646 Total $ 18,943 $ 9,728 $ 28,666 $ 16,561 ________________ (a) The Company capitalized stock-based compensation related to internal-use software development costs of $0.1 million and $0.2 million, during the three months ended October 31, 2020 and 2019, respectively, and $0.3 million, and $0.4 million, during the nine months ended October 31, 2020 and 2019, respectively. The research and development stock-based compensation amounts are presented net of the capitalized costs. (b) During the three and nine months ended October 31, 2019, the Company’s board of directors approved modifications to immediately vest 172,708 options that had been granted previously, resulting in additional stock-based compensation expense of $1.6 million, which was recorded to general and administrative expenses during the three and nine months ended October 31, 2019. During the year ended January 31, 2020, the Company granted 280,316 options to certain executives that were subject to both service-based vesting conditions and performance-based vesting conditions; as the performance-based vesting conditions were not met, no stock-based compensation was recognized on these options for the year ended January 31, 2020. During the nine months ended October 31, 2020, these options were cancelled. The RSUs granted under the 2010 Plan were subject to service-based and performance-based vesting conditions, which included a liquidity event condition. In certain cases the RSUs are also subject to certain other performance metrics. The liquidity event performance-based vesting condition was deemed probable of occurring up on the completion of the IPO. On that date we recorded cumulative stock-based compensation expense of $10.9 million using the accelerated attribution method. The remaining unrecognized stock-based compensation expense will be recorded over the RSUs remaining requisite service periods. Included within these amounts was $1.4 million for the RSUs subject to both the occurrence of a liquidity event and certain other performance metrics. Employee Stock Purchase Plan In September 2020, the board of directors adopted and the stockholders of the Company approved the 2020 Employee Stock Purchase Plan, (“ESPP”), which became effective on September 17, 2020. The ESPP initially reserved and authorized the issuance of up to a total of 2,000,000 shares of common stock to participating employees. The number of shares reserved under the ESPP will automatically increase on the first day of each fiscal year, starting on February 1, 2021, in an amount equal to the least of (i) 2,500,000 shares, (ii) 1% of the outstanding shares of our common stock on the last day of the immediately preceding fiscal year, or (iii) such other amount as the administrator of the ESPP may determine. The ESPP generally provides for 24-month offering periods beginning June 15 and December 15 of each year, with each offering period consisting of four six-month purchase periods, except for the initial offering period which began on September 17, 2020, and will end on December 15, 2022 and the second offering period will begin on June 15, 2021. On each purchase date, eligible employees will purchase the shares at a price per share equal to 85% of the lesser of (1) the fair market value of the Company’s common stock as of the beginning of the offering period or (2) the fair market value of the Company’s common stock on the purchase date, as defined in the ESPP. The Company recognized stock-based compensation expense related to ESPP of $0.3 million during the three and nine months ended October 31, 2020. As of October 31, 2020, $0.6 million amount has been withheld on behalf of employees for a future purchase under the ESPP due to the timing of payroll deductions. As of October 31, 2020, there was $8.3 million of unrecognized stock-based compensation expense related to the ESPP that is expected to be recognized over an average vesting period of 1.4 years. There were no purchases for the three or nine months ended October 31, 2019 related to the ESPP. Common Stock Transfers During the nine months ended October 31, 2020 and 2019, certain of the Company’s existing investors acquired outstanding common stock from former employees of the Company, for a purchase price greater than the fair value of the common stock at the time of the transaction. In connection with these stock transfers, the Company waived its right of first refusal and other transfer restrictions applicable to such shares. As a result, the Company recorded stock-based compensation of $0.3 million and $1.4 million for the nine months ended October 31, 2020 and 2019, respectively, in general and administrative expenses in the condensed consolidated statements of operations. The amount recorded as stock-based compensation represents the difference between the price paid and the estimated fair value at the date of the transaction. During the three and nine months ended October 31, 2019, the Company facilitated a tender offer whereby certain existing investors commenced a tender offer to purchase shares of the Company’s common stock from certain employees and former employees of the Company, for $12.11683 per share, in cash. An aggregate of 1,686,446 shares of the Company’s common stock were tendered pursuant to the tender offer. During the three and nine months ended October 31, 2019, the Company recorded a total of $4.8 million in stock-based compensation related to the tender offer, comprised of $2.6 million in general and administrative expenses, $1.5 million in research and development expenses, $0.7 million in sales and marketing expenses, and less than $0.1 million in cost of revenue in the condensed consolidated statements of operations. The amounts recorded as stock-based compensation represent the difference between the amounts paid over the estimated fair value at the date of the transaction. |